The village of Algasovo began to be settled in 1595, as noted in the church chronicle. In that year, the first household appeared, in 1597, two households, in 1598, three, and in 1599, again two. In 1676, Prince Vasily Kropotkin described the village, where 996 men lived and there were 272 houses. Among the first residents were Ivan Glagazin, Foma Mukhanov, and Lukyan Nazarov. By the end of the 19th century, the population of the village exceeded 10 thousand people. Algasovo had two churches, shops, a school, a post office, and a pharmacy, and weekly markets and fairs were held. Here, bows and sledges were produced. The name of the village has several versions of origin. In the land books of 1674, it is mentioned as Ilyinskoye-Algasovo. It may be related to the names Ali and Gasan or the robber Algas, but it is most likely that the name comes from the Mordovian word "algaks," meaning lowland. The villagers participated in uprisings led by Stepan Razin and Yemelyan Pugachev. From 1928 to 1959, Algasovo was the center of the district.

The Algasovo parish is the oldest in the Tambov diocese. The first mentions of the church date back to 1656. There were two churches in the village: the Ilyinskaya with an altar of St. Nicholas and St. Great Martyr Demetrius of Thessalonica. In 1778, the Nikolskaya church was built. In 1857, Bishop Makary Bulgakov discovered that the Ilyinskaya church had fallen into disrepair and ordered it to be closed. In the early 1860s, the church was renovated, but it burned down in 1865. By 1870, a new stone church with three altars was built. In 1937, the district executive committee closed the church, and in 1938, believers complained to M. Kalinin about the actions of the local authorities. In the 1990s, the church was returned to the Church. The Ilyinskaya church housed the miraculous icon of the Kazan Mother of God and the icon of the Tikhvin Mother of God. At the end of the 19th century, Bishop Anthony of Radonezh initiated the restoration of the old icon. In 1910, peasant Gavriil Yelagin adorned the Tikhvin icon with a silver riza. Unfortunately, both icons have not survived.